DEFINITION of 'Reimbursable Out-Of-Pocket Costs'

Cash payments that an individual or company incurs on behalf of the company, and that will be refunded sometime in the future. While some of these costs may have personally benefited the employees, companies are willing to repay employees for incurring these expenses, because they come about as a result of performing their job.

BREAKING DOWN 'Reimbursable Out-Of-Pocket Costs'

A reimbursable out-of-pocket cost for a sales representative could be a restaurant bill from courting a potential client or the cost of gas to drive to a sales course in a neighboring city.

Most companies have guidelines to help employees determine what expenses are considered reimbursable out-of-pocket costs and which are not. Usually, employees will have to retain receipts and give detailed explanations for their purchases.

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